PIONEER FOOD GROUP LIMITED - Trading Statement For The Six Months To 31 March 2015

Trading Statement For The Six Months To 31 March 2015

Pioneer Food Group Limited
Incorporated in the Republic of South Africa
Registration number: 1996/017676/06
Share code: PFG
ISIN code: ZAE000118279
("Pioneer Foods" or "the Company" or "the Group")

TRADING STATEMENT FOR THE SIX MONTHS TO 31 MARCH 2015

In terms of the Listings Requirements of the JSE Limited, a listed company
is required to publish a trading statement as soon as it becomes reasonably
certain that the financial results for the above period will show a 20% or
more difference from the previous corresponding period.

Shareholders are hereby advised that a reasonable degree of certainty
exists that the adjusted headline earnings per share and adjusted earnings
per share from continuing operations of Pioneer Foods for the 6 month
period ended 31 March 2015, will increase by more than 20% from the
comparative period. Accordingly, shareholders are advised that adjusted
headline earnings per share will be between 439 cents and 459 cents, or
between 35% and 41% higher than the 325 cents reported for the 6 month
period ended 31 March 2014 and adjusted earnings per share from continuing
operations will be between 441 cents and 460 cents, or between 36% and 42%
higher than the 325 cents reported for the 6 month period ended 31 March
2014.

Adjusted operating profit from continuing operations will be between R1,127
million and R1,178 million, or between 32% and 38% higher than the R855
million for the 6 month period ended 31 March 2014. The continuing
operations on an adjusted basis, provides a consistent perspective on the
operational performance as it excludes discontinued operations relating to
Quantum Foods, its unbundling and the impact of the cash-settled Phase 1
(2006) B-BBEE transaction.

Revenue growth from continued operations for the reporting period is in
line with the growth reported for the three months to 31 December 2014 as
published on SENS, on 13 February 2015.

Operating performance benefitted from volume growth which translated into
market share gains for the power brands, appropriate pricing strategies and
the continued focus on cost reduction and efficiencies.

Group statutory headline earnings per share and earnings per share for the
six months to 31 March 2015, is however expected to decrease as a result of
the below mentioned IFRS 2 charge and the impact of the Quantum Foods
unbundling. The relevant details of the Quantum Foods unbundling will be
detailed in the interim financial results for the 6 month period ended 31
March 2015, which is expected to be announced on or about 18 May 2015.
Accordingly, attributable earnings per share will be between 258 cents and
287 cents, or between 18% and 26% lower than the 349 cents reported for the
6 month period ended 31 March 2014 and headline earnings per share will be
between 328 cents and 357 cents, or between 6% and 14% lower than the 380
cents reported for the 6 month period ended 31 March 2014.

The cash-settled Phase 1 (2006) B-BBEE transaction is accounted for in
terms of IFRS 2 and is predominantly impacted by the relative movement in
the Group´s share price. A gain of R48 million was recorded in the
corresponding period as a result of the share price decreasing from R87.50
to R83.50. Conversely, a charge of R203 million was recorded in the current
period as a result of an increase in the share price from R118.00 to
R177.85.

The information provided in this trading statement has not been reviewed or
reported on by the Group´s independent external auditors.

Bellville
20 April 2015

Sponsor
PSG Capital

Date: 20/04/2015 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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